All West Electronics, Inc. v. M-B-W, Inc.

A concrete contractor leased a curb and gutter machine through an equipment company that assigned its lease to a financing agency. Suffice it to say, the machine did not work properly and the contractor alleged he suffered damage. The contractor sued the equipment company and the manufacturer of the curb and gutter machine based on various theories, which ultimately included implied warranty. Unfortunately for the contractor, prior to trial the equipment company filed for bankruptcy. We publish to reiterate that the holding of U.S. Roofing, Inc. v. Credit Alliance Corp. (1991) 228 Cal.App.3d 1431 [ 279 Cal.Rptr. 533 ], has not eroded the contractual privity requirement set out in Burr v. Sherwin Williams Co. (1954) 42 Cal.2d 682 [ 268 P.2d 1041 ].

Procedural and Factual History

Bill Russell (Russell) and his son, Don Russell, a licensed general contractor, formed All West Electronics, Inc. (All West) in 1990 as a concrete contracting company. Russell was responsible for administration and financing, and Don Russell directed operations. By 1992, All West was doing numerous residential and commercial concrete jobs, including single-family housing and apartment projects,…